Oman’s labour market regulator and worker representatives have blocked large-scale job cuts in the private sector, protecting more than 2,000 Omani jobs in 2025.
According to a Muscat Dailyreport, citing the General Federation of Oman Workers’ 2025 Annual Report, the committee responsible for reviewing private-sector workforce reduction requests examined 120 applications during the year. It rejected 87 requests to terminate employment contracts and blocked one proposal that could have led to the dismissal of 2,035 Omani workers.
120 requests reviewed, 87 rejected
The report said 2,182 workers across 30 companies were either issued termination notices or affected by collective layoff plans. GFOW intervened through negotiation, legal support and labour dispute mechanisms to prevent wider job losses.
According to Atheer, which also reported on the GFOW annual report, the committee approved the termination of only 28 Omani workers across six companies, while approving the termination of 485 non-Omani workers across 10 companies. It also approved five requests to reduce Omani workers’ wages by 10% to 25% for six months, with reduced working hours, as a temporary alternative to ending contracts.
The report identified unilateral termination by employers without legal justification, project closures, bankruptcy and liquidation as key reasons behind contract termination cases reviewed during the year.
What employers need to read from this
For HR and business leaders in Oman, the message is direct: economic pressure does not automatically justify mass layoffs. Workforce reduction is now a governed process that requires evidence, review and approval.
Oman’s Labour Law, issued under Royal Decree 53/2023, allows employers to reduce workforce numbers for economic reasons only after approval from the relevant committee. Article 44 states that such reductions can be made only to the extent required to maintain business continuity and avoid bankruptcy. Article 45 establishes the committee, chaired by the Ministry of Labour and including the Ministry of Commerce, Industry and Investment Promotion, Oman Chamber of Commerce and Industry, and GFOW.
This raises the bar for employers planning restructuring. Companies will need stronger documentation of financial stress, clearer business justification, proper consultation, alternatives to termination and compliant communication with affected workers.
Layoffs are becoming a governance issue
The case also shows how Oman is trying to balance private-sector flexibility with national job security. Employers were allowed temporary wage reductions in some cases, but only within defined limits and for a fixed period. This signals that authorities may support business continuity measures, but not unmanaged workforce cuts.
For people leaders, the priority is to build restructuring discipline before a crisis. That means stronger workforce planning, early redeployment, skill mapping, cost modelling and transparent engagement with labour authorities and employee representatives.
The larger lesson is clear: in Oman, mass layoffs are not just an internal business decision. They are a labour governance issue. Companies that treat restructuring as a compliance-led workforce process will be better placed to manage cost pressures. Those that move first and document later risk legal scrutiny, reputational damage and intervention.